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With a market cap of $89.9 billion, Airbnb, Inc. (ABNB) operates as a global platform for stays and experiences. Headquartered in San Francisco, California, the company enables hosts and guests to connect online or through mobile devices to book spaces and experiences.
Companies worth $10 billion or more are generally described as “large-cap stocks”, and Airbnb definitely fits that description. The American company is an online marketplace that has grown to over 5 million hosts, and it has welcomed over 2 billion guest arrivals in almost every country across the globe.
Further, the travel booking platform dropped 16.2% from its 52-week high of $170.10. Over the last three months, Airbnb stock has risen 4.6%, outperforming the broader S&P 500 Index ($SPX), with a 5.8% loss during the same time period.
In longer term, ABNB is up 8.5% on a YTD basis, outperforming SPX’s 2.4% decline. However, over the last 52 weeks, shares of ABNB declined 10.5%, lagging behind the SPX has returned 12.4%.
ABNB has a bearish trend, mostly trading below its 50-day and 200-day moving averages. Recently, the stock traded above its 50-day and 200-day moving averages.
Airbnb stock jumped following its Q4 2024 earnings release on Feb. 13 because it significantly exceeded expectations. Revenue grew 13% year-over-year to $2.5 billion, while net income surged to $461 million from a $349 million net loss in Q4 2023. Nights and experiences booked rose 12% to 111 million, with strong demand in Asia and Latin America, and free cash flow skyrocketed 896% to $458 million. Additionally, Airbnb’s plans to invest $200 million - $250 million in new businesses and its $800 million stock buyback further boosted investor confidence, leading to a 14.5% stock price jump.
But, ABNB has underperformed its rival, Booking Holdings Inc. (BKNG), over the last 52 weeks, with BKNG increasing 43.4%. Further, BKNG experienced a slight decline of over 1% YTD.
Analysts are cautious about ABNB's prospects, given its underperformance compared to SPX over the past year. With a consensus "Hold" rating from 39 analysts, and is currently trading below the mean price target of $159.12.
